On July 26th, Hogan Lovells hosted another installment in its 2017 webinar series on emerging issues involving the Internet of Things (IoT). This webinar focused on potential legal issues with connected vehicles and smart cars, including in the areas of regulatory compliance, privacy, litigation, and intellectual property.

Lance Bultena, a partner in Hogan Lovells Washington, D.C. office, moderated the discussion. Lance opened by explaining why the automotive industry is changing, emphasizing that the world is younger, more urban, more connected, and more concerned about the environment.  Connected vehicles have emerged, in part, as a response to these changes, creating opportunities for new revenue streams for original equipment manufacturers (OEMs), equipment suppliers, content and applications developers and others.  Furthermore, advances such as driverless cars have the potential to significantly reduce the costs of transportation and infrastructure, in addition to reducing accidents and promoting environmental efficiency.

Fast, reliable communications networks are essential for high-quality connected vehicle applications, and there is robust competition for access to the wireless networks and spectrum that enables them. Auto companies currently have access to special purpose spectrum for dedicated short-range communications (DSRC) that is immediately adjacent to a popular 5 GHz Wi-Fi spectrum band.  DSRC technology enables vehicle-to-vehicle communications that auto companies use primarily for safety applications.  Wi-Fi advocates argue that auto companies should share this spectrum, which could affect the reliability and safety of DSRC applications.  These industries are battling not only at the Federal Communications Commission (FCC), the United States telecommunications regulator, but also at the National Highway Traffic Safety Administration (NHTSA).  Under former President Obama, NHTSA proposed to mandate vehicle-to-vehicle technologies in all light vehicles in the United States, citing the potential to reduce accidents caused by human error.  The current administration will likely determine the outcome of that proposal.